Transparency, Trust, & Terms
How to Pick the Right Funding Partner
If you’re a real estate investor in southeastern Wisconsin, you’ve noticed that private money is flowing, and with it, more lenders than ever are vying for your deals. On the surface, that’s good news. More choices should mean better terms, competitive rates, and improved service.
But how do you separate the lenders who truly have your best interests in mind from the ones who don’t?
At MGM Private Capital, we’ve been on both sides of the table—as investors ourselves and as lenders—and we want to help you make an informed choice to get the deal done without eating up your profits.
Experience Matters
Not all lenders understand what matters most in the middle of a deal. Some focus solely on their return or their internal processes, while others know what it’s like to be in the investor seat. From acquisition hurdles to renovation timelines, your lender should understand the realities you face and be able to anticipate your needs.
Acquisition hurdles – getting an offer accepted when multiple buyers are circling, or when the seller needs proof of funds and a lightning-fast close. A lender with experience knows that speed and certainty matter just as much as rate.
Renovation timelines – projects don’t always go as planned. Unexpected repairs, contractor delays, or supply shortages can derail a schedule. An experienced lender will anticipate this and structure draw schedules, contingencies, and extensions in a way that supports you, not punishes you.
Exit strategies – whether you’re flipping, refinancing into a rental loan, or selling into a competitive market, the real measure of a lender is how they help you position for a profitable exit. Someone who’s been there understands the importance of timing, appraisals, and liquidity.
When your lender has lived through those same challenges, they don’t just close loans, they anticipate needs and move quickly when it counts. That kind of experience can be the difference between a deal that closes profitably and one you miss out on.
Transparency Builds Trust
The best lending relationships are built on transparency. Unfortunately, not every lender operates this way. Before you sign, it’s worth digging a little deeper:
Who makes the decisions?
In some lending companies, you never actually speak with the person who decides whether your deal is approved. Your information is passed around, sometimes all the way to an “invisible board” you’ll never meet. That creates delays, confusion, and a disconnect between what’s promised and what’s delivered. With a local, relationship-based lender like MGM Private Capital, you’re working directly with the decision maker—someone who knows the market, understands your deal, and can give you a straight answer on the spot. As yourself, do you have direct access to the decision-maker?
Promotional rates with new lenders
Some lenders make a splash by offering teaser rates: attractive terms for your first deal or two, only to increase costs on deal three or four once you’re committed. These rate changes can make your project less profitable than expected and lock you into a cycle you didn’t sign up for. A transparent lender will be upfront about pricing and consistent across deals, so you know what to expect every time.
Disclosing Fees
It’s common for borrowers to see one origination fee on the term sheet, only to be hit later with line items like “Document Prep,” “Processing Fee,” “Underwriting Fee,” or inflated appraisal costs. Each of these chips away at your bottom line. At MGM Private Capital, we believe in all-in pricing. What you see at the start is what you’ll pay at the closing table—no surprises hidden in the fine print.
Ask your lender: “What’s included in your fees?” or “Will there be any additional fees at closing?”
Exclusivity vs. Flexibility
A red flag to watch for is a lender who demands exclusivity. If your lender insists on being your only funding source, ask yourself: are they protecting your interest, or theirs?
Diversifying among lenders can be a strength. It allows you to scale faster, adapt to different deal structures, and avoid being handcuffed to terms that might shift against you down the line.
Why diversification matters:
Most experienced investors know that having more than one lender is a strength. It gives you flexibility to:
Move quickly if one lender can’t close on your timeline.
Match different lenders to different deal types (rehabs, rentals, commercial projects).
Protect yourself against sudden changes in one lender’s policies or pricing.
Transparent lenders should encourage their borrowers to maintain healthy relationships with multiple lenders. We’d rather earn your repeat business through trust and performance than lock you into a one-sided agreement.
A true partner will welcome that flexibility rather than fear it.
Protecting Your Rights
Another critical question to ask: does your lender require you to sign away rights that don’t belong on the table? Shockingly, some loan documents include provisions like quit-claim deeds signed at closing—giving the lender an instant path to take possession of your property without the normal protections of due process.
This type of clause is unnecessary and one-sided. It places all the power in the lender’s hands and leaves the borrower exposed. As an investor, you should never be pressured into waiving fundamental rights just to get a loan funded.
Your success as a borrower depends on a fair, balanced agreement. That means clear documentation, no buried clauses, and terms that protect both sides. Your property is your investment—and we’re here to help you maximize it, not quietly take it away.
Final Thoughts
With more lending choices available than ever, investors need to look beyond rate sheets. The real questions are about experience, transparency, and trust.
At MGM Private Capital, we’ve built our business on clarity and fairness. We know that if you succeed, we succeed. That’s why we take pride in being transparent lenders and trusted partners in every deal.
If you’re planning your next flip, rental, or construction project in Wisconsin, don’t gamble with hidden fees or rigid terms. Call me at MGM Private Capital. I’ll walk you through your options, give you a clear picture of costs, and help you close fast with a partner who knows this market inside and out.
At MGM Private Capital, we actively support real estate investors across Southeastern Wisconsin with trusted capital options and offer opportunities for capital partners to grow alongside us.